Public Commentary: The information below outlines FG Capital’s approach to blue-carbon project structuring. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
Blue Carbon Project Development – Mangrove, Salt Marsh, and Seagrass (BC, MRV, SCS, SALT)
Coastal ecosystems sequester up to ten times more carbon per hectare than terrestrial forests while delivering storm-surge protection, fisheries nurseries, and biodiversity gains. Restoring and conserving mangroves, salt-marshes, and seagrass meadows converts these climate and resilience services into certified emission-reduction units and sustainable revenue streams. Our advisory team provides complete project design, capital mobilisation, and credit-placement services for sponsors seeking to unlock blue-carbon value.
Project Scope
• Mangrove Rehabilitation (BC):
Hydrological correction, propagule planting, and community stewardship agreements.
• Salt-Marsh Restoration (SALT):
Tidal-flow reinstatement, sediment augmentation, and invasive-species management.
• Seagrass Conservation / SCS:
Mooring-impact mitigation, transplantation, and water-quality improvement initiatives.
• Monitoring, Reporting & Verification (MRV):
Remote sensing, sediment-core analysis, and biomass surveys complying with Verra VM0033, VM0007, or emerging blue-carbon methodologies.
Advisory Framework
1 | Feasibility & Baseline Assessment
• Land-tenure diligence, carbon-stock baselining, and hydrodynamic modelling.
2 | Capital Structuring
• Development loans, subordinated facilities, and equity co-investment aligned with restoration milestones and credit-issuance schedules.
• Advance credit-purchase agreements strengthening cash-flow certainty.
3 | Implementation Oversight
• Engineering design for channel-realignment, seedling-nursery management, and community-training programmes.
4 | MRV & Certification
• High-resolution satellite imagery, sediment carbon-density sampling, and third-party verification.
5 | Credit Monetisation
• Long-term offtake contracts with compliance entities and voluntary buyers; spot-sale facilitation following credit issuance.
Indicative Financial Parameters
| Metric | Mangrove BC | Salt-Marsh SALT | Seagrass SCS |
|---|---|---|---|
| CapEx (USD / ha, Year 1) | 3 000 – 7 000 | 4 500 – 9 000 | 5 000 – 11 000 |
| Annual Sequestration (tCO 2 e / ha) | 8 – 15 | 5 – 10 | 4 – 9 |
| Forward Credit Price (USD / t) | 12 – 18 | ||
| Target Equity IRR (post-tax) | 15 % – 19 % | 14 % – 18 % | 14 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Development Loan | Pledge over project SPV shares and escrowed credit revenues | SOFR + 275 – 350 bps | Multilateral lenders, impact-debt funds |
| Subordinated Facility | Second-rank charge; cash-sweep covenant | SOFR + 475 – 625 bps | Private credit investors |
| Advance Credit Purchase | Delivery contract with make-good provisions | Fixed price USD 14 / t | Compliance entities, corporate buyers |
| Sponsor Equity | Residual cash flow | Target IRR 15 % – 20 % | Concession holders, NGOs, local SPVs |
Stakeholder Benefits
- Coastal Communities: Storm-surge protection, fisheries enhancement, and equitable revenue sharing.
- Credit Purchasers: High-integrity removal credits with measurable biodiversity and SDG co-benefits.
- Investors: Predictable cash flows backed by long-term offtake and resilient natural-capital assets.
- Governments: Nationally Determined Contribution (NDC) support and enhanced coastal-resilience metrics.
Engagement
Organisations interested in developing or financing blue-carbon projects are invited to engage with our advisory team. We would be pleased to discuss feasibility assessments, optimal financing structures, and long-term monitoring arrangements.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information contained herein.
